Management at Work The Canary in the Coal Mine

Management at Work The Canary in the Coal Mine “If the only reason you’re investein sustainability is because thing to do,’ you’re in trouble warned that the dipper-well system wasn’t good for its envi- ronmental reputation, bat only after a blitz of bad PR in the global press did Starbucks finally turn off the water. Today, says he Paclard, “we look at water on the supply side of in-store water consumption by 25 percent grann, w s colfee as a resource to be protected-and Starbucks has plans to cut -JIM HANNA, DIRECTOR OF EMRONMENTAL AFFAIRS, STARBUCxs That goal is part of the company’s Shared Planet Pro- gram, which was launched in 2008. A year later, Starbucks ccording t to Starbucks VP of Clobal Responsibility announced that, as part of the same initiative, all of itb new the company’s efforts to establish itself stores would satisfy certification requirements for LEED brand start with its mission(Leadership in Energy& Environmental Design), a rating a leading sustainable the statement of its organizational purpose (see Chapter 6). system for the construction and operation of environment “We aim to take care of the communities that we depend friendly buildings. Because the guidelines were developed on for our retail business by finding meaningful ways to for office buildings, Starbucks helped to create programs for be engaged with those communities,” says Packard. And both new and renovated retail spaces, and 75 we aim to take care of those communities where we source Starbucks locations opening in 2014 attained LEED eerti- our core products, like coffee, tea, and cocoa.” It’s a mater fication. “My dream, says Jinn Hanna, “is that we solve the of “nurturing the human spirit,” explains Packard, who adds cup issue and a customer walks into a store and says, “Look at that incorporating that value into the firm’s culture has al- lowed Starbucks to set and meet “very bold standards” in that ultra-efficient air conditioning unit By 2015, Starbucks also plans to “ethically source 100 stainabil Starbucks sells hot and cold beverages out of more than percent of the coffee that it buys from producers. Over the past 40 years, Starbucks has invested more than $70 million 23,000 stores in 6+ countries, and those stores account for about in programs to support sustainable and socially sound agri- 80 percent of the company’s carbon footprint-the total of its cultural practices among the roughly 1 million people-most greenhouse gas emissions (primarily carbon dioxide). In order to of them in Latin America-who represent its coffee supply reduce its footprint, Starbucks has set a series of realistic goals to chain. Programs include loans to help farmers develop not be met by 2015, including the widespread recycling of the dis- only sustainable posable cups that it hands out with almost every beverage sold practices as well. about 4 billion per year. Actually, those cups constitute only a Since 2008, miniscule fraction of Starbucks’ carbon footprint, but a ing to Jim Hanna, the company’s director of environmental organization, to i ing practices but forest-conservation a per year. Actually, those cups constitute only a Since 2008, Starbucks has partnered with Conservation accord. International (CI), a U.S-based nonprofit environmental mplement C.A.F.E. (Coffee and Farmer affairs, “perception is reality” when it comes to disposable Equity) Practices-a set of independently developed guide- cups: What most people see is the litter strewn about the lines for monitoring the economic, social, and environmen- streets or tumbling out of overflowing trash cans. By 2015, tal impact of coffee-production programs and practices. B tarbucks intends to have front-of-store recycling bins in ev 2012,98 percent of the small coffee farms operating aco ing to Starbucks-promoted C.A.F.E. practices had managed Before we go any further, we should point out that al- to improve soil fertility, and 100 percent of the sehool-age ery North American store into its operations since 1990, it hasn’t always been as sensi- Cl chairman and CEO Peter Seligmann points out that tive to environmental issues as some people would like. If you Starbucks’ sustainability eforts are motivated in large part by were hooked on your daily Starbucks latte or cappuccino be the need to deal with a major issue in the company’s environ- fore 2008, you might have noticed, next to the giant espresso ment, both business and natural: namely, climate change machine, a sink called a “dipper well.” Baristas used it to “figuring out how to ensure that coffe farning can be a part quick-rinse equipment, and the water was kept running to en- of the climate solution,” as Ben Packard puts it. “The conver though Starbucks has incorporated sustainability practices children on those farms were able to attend school. re that pipes stayed c running in 10,000 stores worldwide used up mor lion gallons of water per day-enough to fill an Olympic-size farmers to produce crops.” The coffee bean grows only in clean. Unfortunately, leaving the water gence of climate change and ecosystem deterioration,” ex stores worldwide used up more than 6 mil- plains Selignann, “is what creates stress on the ability of colfe plains Seligmann, “is what creates stress on the ability of coffe n sp e than 6 mil- cific climates, and those climates are particularly vul swimming pool every 83 minutes. The company had been cifie climates, and those climates are particularly vulnerab Starbacks carbon foolprint than all of th U.S ousting opeuations combioned The nitrous uside that puts the foun in whipped crean accounits for sore of

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